Core Viewpoint - The Beauty Health Company held its Q1 2025 earnings conference call to discuss financial results and future outlook [1][3]. Group 1: Company Overview - The Beauty Health Company is publicly traded on NASDAQ under the ticker SKIN [1]. - The conference call featured key executives including Marla Beck (President and CEO) and Mike Monahan (CFO) [3]. Group 2: Financial Reporting - The company released its Q1 2025 financial results earlier in the day, which are available on its corporate website [3]. - The call included discussions on non-GAAP financial measures, with reconciliations provided in the earnings press release [5].

First Quarter 2025 Earnings Presentation May 8, 2025 Disclaimer This Presentation contains certain forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or financial performance of The Beauty Health Company (the "Company"), capital expenditures, the introduction of new products, market strategy and the ability to execute certain strategic initiatives. Some of the forward-looking statements can be identified by the use of forward- looking ...

Core Insights - The Beauty Health Company (SKIN) reported a revenue of $69.6 million for the quarter ended March 2025, reflecting a year-over-year decline of 14.5% [1] - The earnings per share (EPS) was -$0.08, an improvement from -$0.10 in the same quarter last year, with a positive surprise of 38.46% compared to the consensus estimate of -$0.13 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $63.12 million by 10.26% [1] Financial Performance Metrics - Total delivery systems sold reached 862, surpassing the average estimate of 573 based on two analysts [4] - The active install base was reported at 35,014, slightly below the average estimate of 35,090 [4] - Geographic revenue breakdown showed: - Americas: $46.30 million, exceeding the estimate of $43.49 million, but down 8% year-over-year [4] - EMEA: $15 million, above the estimate of $13.60 million, with a year-over-year decline of 21.5% [4] - Asia Pacific: $8.30 million, surpassing the estimate of $6.98 million, down 30.8% year-over-year [4] - Delivery Systems Net Sales were $20.20 million, exceeding the estimate of $14.30 million, but down 43.6% year-over-year [4] - Consumables Net Sales reached $49.40 million, slightly above the estimate of $48.24 million, reflecting an increase of 8.3% year-over-year [4] Stock Performance - Shares of Beauty Health have increased by 31.5% over the past month, outperforming the Zacks S&P 500 composite, which rose by 11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Beauty Health Company (SKIN) reported a quarterly loss of $0.08 per share, better than the Zacks Consensus Estimate of a loss of $0.13, representing an earnings surprise of 38.46% [1] - The company generated revenues of $69.6 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 10.26%, although this is a decline from $81.4 million in the same quarter last year [2] - Beauty Health shares have declined approximately 10.7% year-to-date, compared to a 4.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $75.25 million, and for the current fiscal year, it is -$0.32 on revenues of $285.58 million [7] - The estimate revisions trend for Beauty Health is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Medical Services industry, to which Beauty Health belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was reported at $69.6 million, exceeding guidance, with adjusted gross margin at 71.9% and adjusted EBITDA at $7.3 million [16][20][22] - Consumable sales totaled $49.4 million, reflecting an 8.2% increase year-over-year, with gross margin improvements driven by better inventory management and a favorable mix towards consumables [16][20][22] - Operating loss improved to $12 million compared to a loss of $17 million in the prior year [21] Business Line Data and Key Metrics Changes - Consumables grew over 8% and now represent over 70% of total revenue, indicating a shift towards high-margin products [6][16] - Total active devices in the field increased to 35,014 units, up from 32,530 units year-over-year, highlighting demand for HydroFacial devices [16][20] Market Data and Key Metrics Changes - Consumable net sales increased by 3.5% in The Americas, 40.2% in APAC, and 7.9% in EMEA, while global device sales saw a 43.5% decline year-over-year due to macroeconomic pressures [17][19] - Revenue in The Americas decreased by 8.1%, while APAC and EMEA revenues declined by 30.4% and 21.6% respectively, with the decline in APAC attributed to a transition to a distributor model in China [19] Company Strategy and Development Direction - The company is focused on three strategic priorities: enhancing commercial execution, accelerating science-backed innovation, and deepening provider partnerships [8][12][27] - The transition to a third-party distribution model in China aims to simplify operations and lower capital intensity while maintaining access to a high-growth market [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macro environment, with expectations for slight improvement in the back half of 2025, while acknowledging ongoing uncertainties [32][60] - The company is committed to driving sustainable margin expansion and delivering long-term shareholder value through strategic initiatives [25][27] Other Important Information - The company expects capital expenditures of approximately $10 million to $15 million for the full year 2025, with guidance for Q2 sales projected between $71 million and $76 million [22][23] - Tariff impacts are estimated at approximately $5 million for 2025, with ongoing adjustments based on evolving conditions [24][90] Q&A Session Summary Question: Key drivers behind better profitability and potential areas of upside - Management highlighted initiatives such as lower price equipment options and improved sales execution as key drivers for profitability, while remaining cautious due to macro uncertainties [30][32] Question: Signs of consumer pullback amid macro uncertainty - Management noted strong growth in signature treatments, with some softness in luxury treatments, indicating a bifurcated consumer demand landscape [33][35] Question: Impact of new product launches on consumables - The HydraLock launch is expected to drive consumer traffic and provider revenue, with excitement around upcoming product launches [39][41] Question: Marketing spend and tactics for the year - The company plans to maintain marketing spend as a percentage of revenue while focusing on driving end consumer traffic to providers [80][82] Question: Progress on distributor model in China and tariff impacts - The transition to a distributor model in China is underway, with management working to mitigate tariff impacts through strategic planning [87][90]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was reported at $69.6 million, exceeding guidance, with adjusted gross margin at 71.9% and adjusted EBITDA at $7.3 million [16][20][22] - Consumable sales totaled $49.4 million, reflecting an 8.2% increase year-over-year, with gross margins improving significantly from 63.4% in the prior year [16][20] - Operating loss for Q1 2025 was $12 million, an improvement from a loss of $17 million in the prior year [21] Business Line Data and Key Metrics Changes - Consumables now represent over 70% of total revenue, growing over 8% [6][16] - Total active devices in the field increased to 35,014 units, up from 32,530 units year-over-year [16] - Non-SENDAO systems accounted for 36% of total device sales in Q1 2025, indicating a successful shift in product strategy [17] Market Data and Key Metrics Changes - Consumable net sales increased by 3.5% in The Americas, 40.2% in APAC, and 7.9% in EMEA [16][17] - Revenue in The Americas declined by 8.1%, while APAC and EMEA saw declines of 30.4% and 21.6% respectively, largely due to macroeconomic pressures and strategic shifts in China [18] - The transition to a third-party distribution model in China is underway, expected to simplify operations and lower capital intensity [8][18] Company Strategy and Development Direction - The company is focused on three strategic priorities: enhancing commercial execution, accelerating science-backed innovation, and deepening provider partnerships [7][12][26] - New product launches, including the HydraLock booster and a dedicated skincare line, are aimed at driving consumer traffic and provider revenue [11][12] - The company is also investing in brand and consumer engagement to elevate awareness and drive traffic to providers [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macro environment, with expectations for slight improvement in the back half of 2025 [32] - The company anticipates continued pressure on capital equipment sales due to financing challenges and uncertainty in global markets [22][23] - Tariff impacts are expected to be approximately $5 million in 2025, with ongoing adjustments to mitigate these costs [24][90] Other Important Information - Total operating expenses decreased by 7.3% to $60.6 million, with significant reductions in selling and marketing expenses [21] - The company ended Q1 2025 with approximately $373 million in cash, reflecting the benefits of cost reductions and operational efficiencies [22] Q&A Session Summary Question: Key drivers behind better profitability and potential areas of upside - Management highlighted initiatives such as lower price equipment options and improved sales execution as key drivers for profitability [32] Question: Signs of consumer pullback amid macro uncertainty - Management noted strong growth in signature treatments, with some softness in luxury treatments, particularly in day spas and plastic surgery channels [33][34] Question: Impact of new product launches on consumables - The HydraLock launch is expected to drive consumer traffic and provider revenue, with excitement around upcoming product launches [40] Question: Progress on the distributor model in China - The transition to a distributor model is well underway, with expectations to complete the transition within the quarter [87] Question: Competition and market share - The company maintains over 60% market share in the U.S. and is focused on clinical backing to differentiate from competitors [90]

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Commission File Number: 001-39565 The Beauty Health Company (Exact name of registrant as specified in its charter) Delaware 85-1908962 (State or o ...

Exhibit 99.1 BeautyHealth Reports First Quarter 2025 Financial Results Long Beach, Calif., May 8, 2025 – The Beauty Health Company (NASDAQ: SKIN) ("BeautyHealth" or the "Company"), home to flagship brand Hydrafacial, today announced financial results for the first quarter ended March 31, 2025 ("Q1 2025"). "Our first quarter results reflect strong execution and continued momentum in our transformation strategy," said CEO Marla Beck. "We exceeded both revenue and adjusted EBITDA guidance, driven by gross prof ...

Core Insights - The Beauty Health Company reported strong execution and momentum in its transformation strategy, exceeding revenue and adjusted EBITDA guidance despite macroeconomic pressures impacting device sales [2][5] - The company is transitioning its China operations to a distributor model and relocating production to the U.S. to mitigate tariff risks, aiming to enhance profit margins and shareholder value [2][5] Financial Performance - Net sales for Q1 2025 were $69.6 million, a decrease of 14.5% compared to Q1 2024, primarily due to lower delivery systems net sales [7][10] - Gross margin improved to 69.8% in Q1 2025 from 59.4% in Q1 2024, with adjusted gross margin at 71.9% compared to 63.4% in the prior year [7][10] - The company reported a net loss of $10.1 million in Q1 2025, compared to a net loss of $0.7 million in Q1 2024 [10][20] Operational Metrics - Delivery systems net sales were $20.2 million in Q1 2025, down from $35.8 million in Q1 2024, with total delivery systems sold decreasing from 1,417 to 862 units year-over-year [3][12] - Consumables net sales increased to $49.4 million in Q1 2025 from $45.6 million in Q1 2024, supported by an active install base growth from 32,530 to 35,014 units [3][5] Guidance and Outlook - The company updated its financial guidance for Q2 2025, projecting net sales between $71 million and $76 million and adjusted EBITDA between $2 million and $4 million [9][11] - For the fiscal year 2025, net sales are expected to be between $270 million and $300 million, with adjusted EBITDA projected between $15 million and $25 million [9][11]

Core Viewpoint - The Beauty Health Company will report its first quarter 2025 financial results on May 8, 2025, and will host an investor conference call shortly after the announcement [1]. Group 1: Financial Reporting - The financial results will be released after market close on May 8, 2025 [1]. - An investor conference call is scheduled for 4:30 p.m. Eastern Time on the same day [1]. Group 2: Investor Relations - A live webcast of the investor call will be available on the company's investor relations website [2]. - A recording of the call will be accessible approximately three hours after its conclusion [2]. Group 3: Company Overview - The Beauty Health Company (NASDAQ: SKIN) focuses on skin health experiences through its flagship brand Hydrafacial™ and other brands like SkinStylus™ and Keravive™ [4]. - The company aims to personalize skin health for diverse demographics and is committed to positive community and environmental impact [4].